SUBSIDISED SHIPPING.

Ashburton Guardian, Volume 56, Issue 129, 13 March 1936, Page 5

SUBSIDISED SHIPPING.

AMERICAN MAIL CONTRACTS. (United Press Association —Copyright) WASHINGTON, March 11. The Senate struck from the Post Office Appropriation Bill the sum of 20,500,C00 dollars, which the Houfie of Representatives had approved for payment to shipping companies under ocean mail contracts provided by the Act of 1920. The sum of 4,850,000 dollars was substituted to pay for the transportation of foreign mail by water at ordinary poundage rates. This step was taken by the Senate to clear the way for an agreement between shipping companies and' the Government on a direct subsidy measure such as that urged by President Roosevelt in the last two years. Senator Copeland, who objected to the Senate’s action, declared .that shipping lines holding 42 ocean man 1 contracts “are just running on a shoestring now”—and most of them would have to cease operation if there was the slightest interruption of the Government assistance to them. Senator Glass, who approved the action, stated: “Members of Congress are tired of explaining to the country why it pays 750,000 dollars to carry 12i dollars’ worth of mail to certain South American republics.”